Angela Merkel has been under increasing pressure on the home loan and apparent attempt to block the Chronicle newspaper

German President Christian Wulff, has resigned after being caught in a corruption scandal involving a bad loan, an apparent attempt to block a report in a German tabloid and a series apparently said gifts.

Wulff, who had served as head of state since 2010, resigned Friday after prosecutors said they had asked the German parliament to lift his immunity.

said they had "concrete evidence" of alleged inappropriate links business leaders along Wulff.

Chancellor Angela Merkel, has canceled a trip to visit the Prime Minister of Italy, Mario Monti, to face the consequences.

Wulff, a member of Christian Merkel, the Union Party, had been his personal choice for president. His departure is an unwelcome distraction for the chancellor, who tries to manage the spiraling debt crisis that threatens to tear Europe apart.

German president has little power, but the main function of the largely ceremonial position is to serve as a moral authority, which is why Wulff had to go.

give his resignation speech of his official residence in Berlin's Bellevue Palace, insisted he had "always acted correctly according to law", but admitted he had committed errors.

had lost the confidence of the German people, he said, had become a distraction from the issues of the day.

"Our land needs a president who can engage in domestic and international challenges," he added.

Merkel expressed "deep regret and personal" coming out of Wulff said in a statement delivered at the chancellery in Berlin.

"During his time in office, Christian Wulff, was an energetic champion for the creation of a modern society, opened in Germany," he said. "He gave us important reminders that the strength of our country lies in its diversity. This concept will remain attached to his name. He and his wife, Bettina, have served this country, the Federal Republic of Germany, with dignity. "

Wulff said decision to resign before a criminal investigation has shown the strength of the German legal system -. "Let everyone equal treatment"

The chancellor said he hoped to begin talks with the opposition Social Democrats (SPD) and Greens party, to agree on a candidate to replace Mr. Wulff.

The Wulff, 52, has been implicated in the scandal that has been simmering since mid-December, when it emerged that he had received a large loan from the private wife of a wealthy friend in his previous job as governor of Lower Saxony.

It was followed in January by the intense criticism angry about a call he made to the publisher of Bild, the biggest seller in Germany, the newspaper, they reported on the loan. None of these things, however, led to his research.

prosecutors in Hanover, capital of Lower Saxony, said Thursday he was now an "initial suspicion" that Wulff had accepted inappropriately or entitlement to benefits in their relationship with David Groenewold a film producer, and immunity Wulff asked the persecution arises for them to continue the investigation -. an unprecedented move against a German president